The biggest problem that banks have faced was the fall in the housing market, and this seems to have bottomed, Rochdale Securities banking analyst Richard Bove told CNBC.Mortgage delinquency numbers improving? Where the hell are you getting that from?"I really believe that the industry has bottomed, that we're not going to see further crashes in home prices or in home sales," Bove told "Squawk Box."
Analysts are no longer happy with banks breaking earnings and revenue forecasts and are now looking at early stage delinquencies, he said. If that figure improves, then the stocks of the banks which beat earnings estimates are likely to rise, he added.
"It's all on expectation on what future numbers will be and for that people are going to keep an eye on these early stage delinquencies," Bove said.
Nope, home prices still have a ways to go, and that direction is down, down, down. But welcome to the Future Stupidity file!
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